CREDIT UNION HELPS MORE THAN 700 PEOPLE THANKS TO PARTNERSHIP WITH CITY OF YORK COUNCIL

12.00.00am GMT Wed 27th Jan 2010

North Yorkshire Credit Union has helped more than 700 people save money on short term loads since April, thanks to a £100,000 loan from City of York Council.

The majority of the loans were for amounts up to £500 and were requested for a number of reasons including housing issues and debt repayments.

Since April the Credit Union has loaned more than £700,000 to residents of York and North Yorkshire.

Calculations by the Credit Union suggested that the loans it makes using the £100,000 provided by City of York Council could save borrowers over £400,000 in interest repayments, compared to the cheapest alternative legitimate loans, and much less than the horrific interest rates from loan sharks.

Liberal Democrat Council Leader, Councillor Andrew Waller said he was pleased the investment from the Council had been able to help so many people as part of the council's "One City" campaign in response to the downturn.

He said, "I am delighted that by using some of the council's reserves in this way we have helped the Credit Union to go from strength to strength and meet many more loans than they were previously able to. They provide a great service lending to people who don't have easy access to credit much needed funds in the short term. Anything that we can do to rid our streets of loan sharks must be worth doing."

"Despite the fact that the country is technically out of recession, people are still feeling the effects of the downturn and it is important that we do all we can to help them."